Calculate the value of a put option

Assignment Help Business Management
Reference no: EM132681578

Use the Black-Scholes formula for the following stock:

TIME TO EXPIRATION- 6MO. STAND. DEV.- 54% PER YR.

EXERCISE PRICE- $54

STOCK PRICE- $52

ANNUAL INT. RATE- 4%

DIVIDEND- 0

Calculate the value of a put option. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM132681578

Questions Cloud

Adopt the new capital structure : They are considering a new capital structure of 50% debt and 50% equity. If company A has a higher EBIT breakeven level
Calculate the company break-even point in units : The company's annual fixed expenses are $40,000. The sales price of a pizza is $16, Calculate the company's break-even point in units (pizzas)
What will her annual profits for the store need : What will her annual profits for the store need to be if she wishes to recover the $30,000 in 5 years (assuming equal profits each year)
Determine the correct inventory amount on December : Crane received goods costing $40,000 on January 2 that were shipped FOB destination on December 29. Determine the correct inventory amount on December
Calculate the value of a put option : Use the Black-Scholes formula for the following stock:
What is the annual implied interest of a five?-year zero : What is the annual implied interest of a five?-year zero-coupon bond of 12?% and a par value of ?$1,000??
What amount should Vaughn report as its December inventory : Both the Pelzer purchase and the Alvarez sale were in transit at year-end. What amount should Vaughn report as its December 31 inventory
After-tax cost to shareholders of remunerating : The firm's income tax rate is 36 percent. What was the after-tax cost to shareholders of remunerating this employee with options?
Calculate the size of payments : Anthony received a loan of $8,000 at 4.52% compounded semi-annually from a credit union to use as working capital for his business. He had to make semi-annual p

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd